The Custom loan is a type of loan that does not exist in any category, it is created by the lender especially for the borrowers. The custom loan is a unique short-term home loan. It is different from any 3 months, 6 months, or 18 months loan. The custom loan gives you the flexibility to choose the term length between 3 days to 45 days. You will have an option to pay off the entire amount at once till the due date. If not possible, then you can take a percentage of your revenue until it is paid off.
When you will need a custom loan?
Sometimes circumstances occur where your requirements do not match any plans. You have a different situation that does not fit into any category. Or the banks or lenders could not find any plans that can match your situation. In such a special case, the lender creates the custom loan for that particular situation to fit in plans. Lenders make sure that at the end of the day, the borrower has a plan that fits their needs.
Following are some custom loans examples:
- Students loans – used to finance the education.
- Mortgages – used to finance the purchase of a house.
- Auto loans – used to finance the purchase of a vehicle.
- Personal loans – used for personal purposes.
Things you need to know about custom-loan
- In a custom loan, they evaluate the loan fees as a single percentage of the total custom loan amount.
- The outstanding amount, if your balance remains till the loan due date then the amount is automatically adjusted by withdrawing from the primary account.
- In a custom loan, they allow you to take up to 10% of an available business line of credit. For this, your business line of credit should potentially be strong.
- Apart from having other loans, you can apply for only one custom loan. You cannot take more than one custom loan at once. If needed you can again apply for the custom loan, once you pay the older one.
- When you go opting for a custom loan, there is no such time limit, particularly for this loan. You can pay the outstanding loan till the last day of the repayment schedule. This repayment schedule is based on the long-term length schedule that you have selected.
A loan payment schedule for the payment of the loan is scheduled by the custom loan schedule. You can do this by using any of the following unique features:
- Interest-only payments
- Balloon payment
- Delayed first payment
- Fiscal years end for subtotals
- Compounding on the payment date or daily
The custom loan is obviously a better solution than others as it gives flexibility to the customers to get the loan that best fits their needs. Apart from that, you can borrow this loan with the ongoing of your other long-term loans. Also, the flexibility on repayment is one of the benefits for the consumers. However, this loan might be secured or unsecured.
If you are looking for an easy short-term loan you can go for a custom loan.